Anyone fill up their car lately? Or did you notice that your grocery bill keeps getting larger and larger? I know I have. What we’re seeing is inflation rearing its ugly head. Sure, there’s a technical definition, but for us, this basically means the value of the dollar (or other fiat) is decreasing. In other words, you’re having to spend more and more of your hard-earned money to pay for commodities and necessities alike. So what can we do about it? For starters, invest in precious metals.
Why should you invest in precious metals like gold and silver?
While H Cap Consulting 360’s main goal is to help you make additional income so you can achieve financial freedom, we also want to help you preserve your current assets. Therefore, one thing you want to do is to diversify your portfolio so that you can be as inflation proof as possible.
Certainly, you want to have some cash stored away in the bank. Yes, the value of the dollar is definitely on the decline, but it’s still good practice to have cash on hand. But should everything be in cash? Definitely not! Ultimately, you want a well-rounded portfolio consisting of cash, securities, maybe some crypto, maybe some real estate, and definitely some precious metals! As such, one of the best ways to inflation proof your assets is to try and spread your assets around. You don’t want to be risky, nor do you want to put all of your eggs in one basket. That being said, one great way to diversify is to invest in precious metals such as gold and silver.
Investing in gold, silver, platinum, or other precious metals has its perks. Yes, there are some drawbacks, but there’s something to be said about owning real assets. Not to mention, over the past year, the prices of both gold and silver have increased dramatically. This means that as the dollar has declined, the value of precious metals has increased. Therefore, if you have precious metals in your portfolio, then you’ve helped to insulate your assets from inflation.
What do precious metals have to offer?
Here are some of the perks of adding precious metals to your portfolio, just to name a few:
- Precious metals tend to go up in value when other investments decline in value; this helps hedge your portfolio
- Precious metals serve as a buffer against inflation (as we’ve noted)
- You don’t have to pay taxes until you sell
- Nobody has to know you own them
- In worst case financial situations, precious metals can actually be used to buy and sell when other currencies have been rendered useless
For these reasons alone, it makes sense to add some gold and silver to your portfolio. Certainly, you don’t want to put everything into gold and silver, nor do you want to limit your returns as an investor. However, having gold and silver in your portfolio is a wise investment strategy and a buffer against inflation amongst other things.
On another note, stocks have proven as a great hedge against inflation as well. However, that’s another topic for another day. In the meantime, consider buying some precious metals to add to your portfolio. If you don’t have a portfolio, there’s no better time to start. Even if you can just afford a small amount, you have to start somewhere. Check out APMEX.com. The road to financial freedom starts today! Happy investing!
Let’s all retire early together!